In the document Verizon Wireless claims that it may run out of spectrum "in some areas" of the U.S. by as early as next year -- 2013. The carrier predicts that its holdings will be almost completely exhausted by as early as 2015.

The heavily redacted document offers scant clues as to how Verizon Wireless came to these predictions. However, Verizon Wireless is deploying new spectrum-hungry LTE at a rapid pace, with its network currently covering an industry-leading 200+ million Americans.

The document hints that Verizon Wireless plans to combat shortage with LTE femtocells -- a similar technique to that used by rival AT&T, Inc. (T) to shore up its deficient 3G network in urban areas. Verizon Wireless also cited plans to repurpose CDMA 1x spectrum for LTE use.

Some smaller carriers like Deutsche Telekom AG's (ETR:DTE) T-Mobile USA have sought to block the large sale, fearful that it would create a winner takes all atmosphere, or in T-Mobile's words an "excessive concentration" of spectrum. Indeed, Verizon Wireless' current spectrum holdings are thought to grossly exceed those of third and fourth largest mobile carriers Sprint Nextel Corp. (S) and T-Mobile USA.

Regardless of the outcome in the proposed AWS purchase, both Verizon Wireless and AT&T are also pushing hard for the approval of President Obama's proposed spectrum repurposing auction. The proposed auction is currently stalled, as it lacks the Congressional authorization to go forward, amid a partisan stalemate that's affecting a broad host of issues.

The issue at hand is that some television providers who bought spectrum licenses are now sitting on unused spectrum after the transition to digital television. The proposal by the Obama administration is to allow these companies to voluntarily sell their spectrum in a special FCC auction. The FCC would keep a cut of the proceeds, allowing it to deliver a nationwide emergency response network and begin national broadband efforts. The rest of the proceeds would go to the licensee.

AT&T and Verizon are fighting to convince Congress to authorize a special spectrum (re)auction.
[Image Source: Oscar Hidalgo for The New York Times]

The proposed auction will likely see similar opposition from smaller carriers like T-Mobile who fear that it will give AT&T and Verizon and opportunity to gobble up more spectrum -- and more market share, as a result.